Seaborne coking coal prices stabilise on firmer sentiment

The seaborne coking coal market remained calm on Thursday December 5, with sentiment seeing an improvement compared with the past few weeks.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

Steel First’s premium hard coking coal index for material sold cfr Jingtang stood at $149.94 per tonne on December 5, up by $0.08 from Wednesday.

Premium hard coking coal prices fob DBCT Australia were calculated at $139.12 per tonne, down by $0.76 per tonne from Wednesday.

The price for hard coking coal cfr Jingtang stood at $139.02 per tonne on Thursday, down by $0.04 per tonne from Wednesday.

Hard coking coal fob DBCT was $124.29 per tonne, down by $0.79 per tonne on the day.

“The market is still pretty quiet, but it seems to have stabilised,” a trading source in Beijing told Steel First. “I have a few more enquiries from customers although their price expectations remain low.”

A Tianjin-based trader said some mills and coking plants are looking to buy at the ports, but they are still deliberating what the right price is for them in relation to their needs.

Strong coke and thermal coal prices in China have also given some support to the market, sources said.

Separately, the BHP Billiton Mitsubishi Alliance is understood to have started its monthly price negotiations for January with Japanese steel mills, according to multiple sources.

Peak Downs and Saraji were heard offered at $143 per tonne fob Australia, while Goonyella and Gregory were offered at $140 per tonne fob and $124 per tonne fob, respectively.

The most-traded May 2014 hard coking coal futures contract on the Dalian Commodity Exchange closed at 1,125 yuan ($184) per tonne on Thursday, up from Wednesday’s close of 1,124 yuan ($183) per tonne.

The most-traded May 2014 coke contract closed at 1,622 yuan ($265) per tonne on the same exchange, down from the previous day’s closing price of 1,637 yuan ($267) per tonne.

What to read next
German copper producer Aurubis is among the least likely to consider reducing capacity despite record low treatment charges (TCs), according to its chief executive officer
European copper demand, particularly for wire rod, remains strong and seems to be outpacing broader macro-economic growth in the region, the chief executive officer of German producer Aurubis has said.
The process to place the smaller and less efficient of the two processing plants at Los Bronces on care and maintenance is expected to be completed by mid-2024 and comes as the company pushes value over volume, the chief executive officer of Anglo American Chile said
The near-term prospects for Chinese copper smelting capacity amid near-zero treatment charges (TCs) will, to a certain extent, depend on plants’ exposure to spot TCs, the chief executive officer of Rio Tinto’s copper division said on Tuesday, April 16
Increased construction spending could be unlocked early next year once the fraught US presidential election is settled, and steel participants are gearing up for a busy 2025
It will be very difficult for many Chinese copper smelters to compete with treatment and refining charges (TC/RCs) at record lows, according to the chairman of Chile’s state-owned copper producer Codelco